The global cloud infrastructure market, as per a recent report by Allied Market Research, is poised for remarkable growth, projecting a surge to $440.2 billion by 2032. This reflects a significant compound annual growth rate (CAGR) of 16.7% from 2023. In 2022, the market generated $96.9 billion, indicating a substantial upward trajectory.
Allied Market Research’s report, titled ‘Cloud Infrastructure Market by Component, Deployment Mode, End User, and Region: Global Opportunity Analysis and Industry Forecast, 2022-2032,’ presents a comprehensive overview of the market dynamics, including changing trends, top segments, key investment areas, regional landscape, and competitive scenarios.
The market growth is driven primarily by a surge in cloud computing demand, escalating interest in AI cloud and hybrid cloud technologies, and increased spending on cloud services. Additionally, the rise of the Internet of Things (IoT) and connected devices is expected to further fuel market expansion. However, challenges such as a lack of technical expertise may limit growth to some extent.
The COVID-19 pandemic played a dual role in this sector. While it accelerated the adoption of cloud services due to the increase in remote work and digital collaboration, it also brought to light various challenges. Cloud infrastructure was crucial in supporting the flexibility and scalability needed for the shift to remote work, as organizations adopted cloud platforms for collaboration tools, data storage, and application deployment.
In terms of market segments, the hardware component held a significant share in 2022, almost half of the global revenue. This dominance is attributed to the increasing adoption of hardware accelerators like GPUs, FPGAs, and ASICs, which are vital for AI, ML, and HPC workloads. However, the services segment is anticipated to witness the fastest CAGR of 19.1%, driven by the growing demand for AI and ML services in the cloud.
Public Cloud, Multi-Cloud, Hybrid Cloud
Public cloud deployment emerged as the leading segment in 2022 and is expected to maintain its dominance through 2032, according to the report published by Allied Market Research. This trend is fueled by the widespread adoption of multi-cloud strategies and the evolution of serverless computing. The hybrid cloud segment, however, is predicted to exhibit the fastest CAGR of 19.0%, reflecting the increasing preference for multi-cloud strategies within hybrid environments.
The BFSI (Banking, Financial Services, and Insurance) sector dominated the end-user segment in 2022 and is poised to continue its lead through 2032. BFSI organizations are increasingly adopting hybrid cloud architectures for regulatory compliance, data security, and scalability. The healthcare sector is expected to register the fastest CAGR of 21.2%, propelled by the growing use of telehealth and remote patient monitoring solutions enabled by cloud technology.
Geographically, North America accounted for the largest market share in 2022, driven by the rapid adoption of edge computing and a focus on cloud security and compliance. The Asia-Pacific region, however, is forecasted to experience the fastest CAGR of 20.7%, thanks to the adoption of cloud-native technologies and multi-cloud strategies.
In conclusion, the global cloud infrastructure market is on a robust growth path, with diverse components and deployment modes catering to varied end-user needs. The market’s expansion, confirmed by Allied Market Research’s report, would be a testament to the increasing reliance on cloud technologies in a digitally transforming world, offering scalability, agility, and innovative solutions across sectors.
